Information on the Target

Lagercrantz Group has acquired 100% of the shares in Epoke A/S as of June 10, 2025. Epoke A/S, headquartered in South Jutland, Denmark, is a leading manufacturer specializing in winter road maintenance equipment. Established in the 1930s, Epoke has established itself as a frontrunner within the road safety sector, recognized for its innovative and environmentally sustainable solutions. The company boasts an impressive annual revenue of approximately DKK 240 million, coupled with strong profitability.

Peter Bertelsen, Managing Director of Epoke, expressed confidence in the acquisition, stating, "I see Lagercrantz as a strategic, long-term owner who will support our continued growth by building on our market position and industry expertise." This acquisition aligns with Lagercrantz's commitment to enhancing their portfolio and expanding their market reach.

Industry Overview in Denmark

The winter road maintenance industry in Denmark is characterized by significant innovation and adherence to environmental standards, making it a critical component of the nation's infrastructure management. The harsh winters necessitate efficient and effective road maintenance solutions to ensure safety and mobility for residents and travelers alike. Denmark's commitment to sustainability has also led to an increased demand for eco-friendly maintenance equipment.

As a result, manufacturers in this sector are continuously developing advanced technologies aimed at improving the effectiveness of snow and ice removal. These innovations not only enhance road safety but also minimize the environmental impact typically associated with traditional snow removal methods. The Danish government supports the industry through various regulations and incentives designed to foster eco-friendly practices and technologies.

The market for winter road maintenance equipment is expected to grow, driven by the ongoing need for municipalities and private entities to invest in high-quality, sustainable solutions. With a strong emphasis on reliability and effectiveness, companies such as Epoke are well-positioned to capitalize on this growing demand. The competitive landscape is underscored by the presence of established players and innovative newcomers, all vying for market share.

The Rationale Behind the Deal

The acquisition of Epoke A/S aligns strategically with Lagercrantz Group's objectives to bolster their position in the international market. By incorporating Epoke into their Division International, Lagercrantz aims to leverage Epoke's niche market leadership and best-in-class technology to expand both domestically and abroad. This synergy is expected to enhance Lagercrantz's overall growth trajectory as they continue to strengthen their portfolio.

Furthermore, the acquisition is poised to have a favorable impact on Lagercrantz Group's earnings per share, offering shareholders additional value and advancing the company's long-term goals. As the need for winter road maintenance increases, partnering with a market leader like Epoke provides a strong competitive advantage.

Information about the Investor

Lagercrantz Group is a Swedish investment company that focuses on acquiring and developing niche companies in various technical sectors. The group has a demonstrated history of strategic growth through acquisitions, consistently identifying businesses that complement their expertise and market vision. By fostering innovation and operational excellence, Lagercrantz aims to enhance the value of their investments over time.

With a solid foundation and robust business model, Lagercrantz is well-equipped to support Epoke in realizing its full potential. The firm’s extensive experience in managing diverse portfolio companies will be an asset in guiding Epoke toward sustained growth and profitability in the evolving market landscape.

View of Dealert

Based on the current industry trends and the strategic alignment of this acquisition, this deal presents itself as a promising investment opportunity for Lagercrantz Group. The partnership with Epoke not only positions Lagercrantz favorably within the winter road maintenance sector but also signifies their commitment to environmentally sustainable practices, which are increasingly important in today's market.

The anticipated positive impact on earnings per share further supports the notion that the acquisition will provide tangible benefits to Lagercrantz Group in the near future. As Epoke continues to innovate and adapt to the growing demand for sustainable road maintenance solutions, Lagercrantz stands to gain from these advancements.

Moreover, Epoke’s established reputation and strong market position empower Lagercrantz with a solid foundation for future expansion. By tapping into Epoke's existing client base and exploring new international markets, Lagercrantz can diversify its revenue streams and enhance overall profitability.

In conclusion, this acquisition is expected to create a synergistic relationship that not only supports immediate growth but also fosters long-term strategic benefits within the broader context of the road safety and maintenance industry.

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